Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/04/2016 - RESOLUTION 2016-078 URGING THE CITY'S ELECTORS TOAgenda Item 9 Item # 9 Page 1 AGENDA ITEM SUMMARY October 4, 2016 City Council STAFF Darin Atteberry, City Manager SUBJECT Resolution 2016-078 Urging the City's Electors to Vote "Yes/For" Ballot Issue 2A on the Ballot of the November 8, 2016, Election, Which Asks City Voters to Confirm that the City May Keep and Spend All Revenues it has Received and Will Continue to Receive from the "Keep Fort Collins Great" .85% Sales and Use Tax City Voters Approved in 2010. EXECUTIVE SUMMARY The purpose of this item is to bring forward a resolution in support of the November ballot question asking voters to confirm that the City may retain and spend all revenues it has received and will continue to receive relating to the “Keep Fort Collins Great” .85% sales and use tax voters approved in 2010. BACKGROUND / DISCUSSION The Leadership Planning Team requested staff to draft and bring forward the attached resolution. ATTACHMENTS 1. Agenda Item Summary Relating to Submittal of a Ballot Question to Electors, August 30, 2016 (PDF) Agenda Item 1 Item # 1 Page 1 AGENDA ITEM SUMMARY August 30, 2016 City Council STAFF Wanda Winkelmann, City Clerk Mike Beckstead, Chief Financial Officer Darin Atteberry, City Manager SUBJECT Items Relating to Submitting a Ballot Question for the November 8, 2016 Election EXECUTIVE SUMMARY A. Possible Public Hearing and Motion Regarding Protest of Ballot Language B. Resolution 2016-068 Submitting a Ballot Question to the Registered Electors of the City at a Special Municipal Election to be Held on November 8, 2016, and Conducted as a Coordinated Election with Larimer County, Asking the Voters to Confirm that the City May Retain and Spend All Revenues it has Received and will Continue to Receive Relating to the “Keep Fort Collins Great” .85% Sales and Use Tax Voters Approved in 2010. The purpose of this item is to is to set ballot language for the voters of Fort Collins to confirm that they intended for the City to collect, keep, and spend all revenues collected as authorized and directed in the 2010 “Keep Fort Collins Great” ballot question. Ballot language is being set at the earliest possible date. Any protest of the proposed ballot language must be received no later than Monday, August 29 at noon. The protest(s) shall be heard, considered, and resolved by Council prior to adoption of Resolution 2016, 068. If protest(s) are received, copies will be included in Council’s “Read-before” packet. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION In 2010 voters approved a .85% sales and use tax increase to be spent for the following purposes: x 33% for street maintenance and repair, x 17% for other street and transportation needs, x 17% for police services, x 11% for fire protection and other emergency services, x 11% for parks maintenance and recreation services, and x 11% for other community priorities as determined by the City Council. The 2010 ballot language also asked voters whether: “the full revenues derived from the tax, and investment earnings thereon, may be retained and expended by the City for such purposes, notwithstanding any State revenue or expenditure limitations including but not limited to [TABOR]” (“KFCG Revenue Change”) ATTACHMENT 1 Agenda Item 1 Item # 1 Page 2 The KFCG initiative passed with 60% approval. In the state of Colorado, any proposed tax increase is subject to the Colorado Taxpayer’s Bill of Rights (TABOR). The City asked voters in 1997 for exclusion from the revenue-limitation provisions of TABOR. This is commonly called “de-Brucing.” Voters approved this ballot measure by 57%. TABOR requires for tax increases that the first year’s tax revenue, as well as the expected fiscal year spending without the tax increase, be estimated in the TABOR notice that is mailed to voters before the election. TABOR also contains language addressing the consequences of when actual revenues collected exceed these estimates. In 2010, the TABOR notice for the KFCG tax estimated one-year (2011) revenue from the .85% increase to be $18.7 million. Actual revenue in 2011 was $19.7 million. Although voters approved in 1997 a general “de-Brucing” question authorizing the City to retain and spend all excess TABOR revenues collected by the City in all future years, and also approved in 2010 the KFCG ballot question with language stating that the City could keep and expend “all revenues” from the KFCG tax, a citizen has indicated they will sue the City under TABOR asking the courts to require the City to refund a portion of the KFCG tax revenues the City has already collected and spent for the voter-authorized purposes described because the City’s actual revenues in 2011 exceeded the estimates in the TABOR notice for the KFCG tax. Similar concerns were recently raised relating to the State of Colorado’s November 2015 ballot question for Proposition BB, which asked the State’s voters to allow the State to retain and spend the revenues it received in fiscal year 2014-15 from the marijuana taxes the State’s voters approved in Proposition AA at the November 2013 election. The State appears to have done this on the basis of a legal opinion from the Colorado Office of Legislative Legal Services (“LLS”) (Attachment 2), which raised questions about whether the State’s de- Brucing waivers of TABOR’s revenue limitations were sufficient to avoid refunding its excess revenues relating to the marijuana taxes without seeking additional voter approval. Unfortunately, as the LLS opinion indicates, this question has not been answered by the Colorado appellate courts. Consequently, rather than litigate this issue, which could take years and would leave City budgeting in a state of uncertainty, the City believes it is more prudent to ask voters as soon as possible to confirm that in approving the KFCG tax in 2010 they did intend for the City to use all KFCG revenue as outlined in the original ballot language. On an annual basis, Council and citizens are provided complete accounting of KFGC collections and expenditures. These reports can be found at fcgov.com/kfcg. Some examples of KFCG tax provided services include: x Streets. More than 300 lane miles have been resurfaced, and surface patching, centerline marking, sidewalk and concrete work throughout the City has been completed. x Other Transportation. Nine bridges have been designed and/or constructed (including Shields at Rolland Moore, East and West Prospect, and multiple bridges over Arthur Ditch). Safe Routes to School, Neighborhood Plans and Neighborhood Parking initiatives have been designed and implemented. Transfort, Max and Dial-a-Ride have expanded service, including Saturday and evening trips. Signals and sidewalks have been upgraded throughout the City, improving traffic flow and ADA accessibility. x Police. Thirty positions have been added, including 19 sworn police officers. With additional resources, there has been an increase in Community Policing efforts, resulting in reduced call volumes for both neighborhoods and in Old Town. x Fire. Poudre Fire Authority (PFA) has hired 13 firefighters and staffed the South Battalion. Response times have been reduced by more than 2 minutes in PFA’s southern jurisdiction. Funding has also been used to ensure first responders have up-to-date equipment including breathing apparatuses. x Parks and Recreation. Approximately 3,000 scholarships per year have been provided to low-income citizens, Fossil Creek Trail was expanded and connected to Spring Creek trail, more than 4,000 hours per year of Adaptive Recreation programming was provided, and the existing service hours and levels at all City Recreation centers has been maintained. Various park improvements were completed, Agenda Item 1 Item # 1 Page 3 including Rolland Moore restrooms, Veteran’s Plaza, field lighting and playground equipment upgrades. x Other Community Priorities. Funding has been provided for Poudre River capital restoration projects, more than 10 community agencies supporting before/after school care, school lunch programs and other meals for low income citizens, the annual 4th of July celebration for citizens at City Park, and staffing/supplies to maintain the downtown flowers. CITY FINANCIAL IMPACTS Potential financial impacts to the City are varied. Many communities are struggling with untested TABOR interpretations. With no clear case law, litigation could be both lengthy and the outcomes unknown. If the City were to choose not to go to the voters but await threatened litigation, there would be cost for defending the anticipated case, and also in the uncertainty of the outcome. Should the City be required to refund overages in collections, those refund mechanisms are also undetermined. Regardless of the mechanism, citizens would see a reduction in service going forward related to KFCG funded services including police, fire, transportation, parks and recreation and other community priorities. The cost of placing this item on the November ballot is expected to be $300k - $500k. PUBLIC OUTREACH Staff has attempted to keep the public informed of this complex TABOR question and City actions addressing the suggested lawsuit through press releases. Once the ballot language is adopted, the City will be bound by campaign laws and will be limited in what and how information is communicated. With this in mind, and in anticipation that City Council may put this measure on the ballot, staff has developed a timeline and a set of FAQs. ATTACHMENTS 1. KFCG TABOR FAQs (PDF) 2. Colorado Office of Legislative Legal Services Opinion Dated March 10, 2014 (PDF) TABOR/KFCG FREQUENTLY ASKED QUESTIONS What is the issue? In 2010, voters approved a new .85 sales tax, “Keep Fort Collins Great” (KFCG). Recently a citizen has argued that under Colorado’s Taxpayer’s Bill of Rights (TABOR), the City must either refund a portion of the KFCG tax revenues or seek voter approval to keep them. The City has been operating with the understanding that past voter approval and the broad language used in the 2010 KFCG ballot question allowed all revenue to be retained and spent according to the outcomes outlined by the citizens. Based on new and evolving interpretations of “de-Brucing” measures, the City has decided to confirm this with voters. What is TABOR and “de-Brucing?” In 1992, Colorado voters approved TABOR. TABOR is a complex provision of the Colorado Constitution that places limitations on how governments impose taxes and issue debt. It also places limitations on the amount of revenues governments can retain and spend. Governments may ask voters to waive TABOR revenue limitations. This is commonly called “de-Brucing,” named after TABOR’s main proponent in 1992, Douglas Bruce. In 1997, Fort Collins voters approved a general “de-Brucing” question authorizing the City to retain and spend all of its TABOR revenues in all future years. The voters also approved broad “de-Brucing” language in the KFCG ballot question. If voters already authorized the City to retain and spend all KFCG revenues, why do we need another vote? As mentioned above, a citizen has indicated he will sue the City under TABOR asking the courts to require the City to refund a portion of the KFCG tax revenues the City has already collected and spent for the purposes the voters approved in the KFCG ballot question. Rather than litigate this issue, which could take years and would leave City budgeting in a state of uncertainty, the City believes it is more prudent to ask voters as soon as possible to confirm that they did intend for the City to use all KFCG revenue as the voters directed in the original ballot language. A timeline of key dates is attached. What was originally approved by voters? In 2010, City voters approved the .85% “Keep Fort Collins Great” (KFCG) sales and use tax by 60% approval to be spent in the following percentages for these purposes: • 33% for street maintenance and repair • 17% for other street and transportation needs • 17% for police services • 11% for fire protection and other emergency services • 11% for parks maintenance and recreation services • 11% for other community priorities as determined by the City Council The 2010 ballot measure approved by voters also asked whether: “the full revenues derived from the tax, and investment earnings thereon, may be retained and expended by the City for such purposes, notwithstanding any State revenue or expenditure limitations including but not limited to TABOR.” How much excess tax revenue was collected, and how was it spent? In 2010, the ballot estimated one-year (2011) revenue from the .85% increase to be $18.7 million. Actual revenue was $19.7 million. On an annual basis, Council and citizens are provided complete accounting of KFGC collections and expenditures. These reports can be found at fcgov.com/kfcg. Some examples of KFCG tax provided services include: x Streets. More than 300 lane miles have been resurfaced, and surface patching, centerline marking, sidewalk and concrete work throughout the City has been completed. x Other Transportation. Nine bridges have been designed and/or constructed (including Shields at Rolland Moore, East and West Prospect, and multiple bridges over Arthur Ditch). Safe Routes to School, Neighborhood Plans and Neighborhood Parking initiatives have been designed and implemented. Transfort, Max and Dial-a-Ride have expanded service, including Saturday and evening trips. Signals and sidewalks have been upgraded throughout the City, improving traffic flow and ADA accessibility. x Police. Thirty positions have been added, including 19 sworn police officers. With additional resources, there has been an increase in Community Policing efforts, resulting in reduced call volumes for both neighborhoods and in Old Town. x Fire. Poudre Fire Authority (PFA) has hired 13 firefighters and staffed the South Battalion. Response times have been reduced by more than 2 minutes in PFA’s southern jurisdiction. Funding has also been used to ensure first responders have up-to-date equipment including breathing apparatuses. x Parks and Recreation. Approximately 3,000 scholarships per year have been provided to low- income citizens, Fossil Creek Trail was expanded and connected to Spring Creek trail, more than 4,000 hours per year of Adaptive Recreation programming was provided, and the existing service hours and levels at all City Recreation centers has been maintained. Various park improvements were completed, including Rolland Moore restrooms, Veteran’s Plaza, field lighting and playground equipment upgrades. x Other Community Priorities. Funding has been provided for Poudre River capital restoration projects, more than 10 community agencies supporting before/after school care, school lunch programs and other meals for low income citizens, the annual 4th of July celebration for citizens at City Park, and staffing/supplies to maintain the downtown flowers. If this is not approved, what happens next? That’s unknown at this point. If the City were required to provide a refund or reduce future collections, citizens would see a direct reduction in City services going forward. August 25, 2016 -1- RESOLUTION 2016, 068 OF THE COUNCIL OF THE CITY OF FORT COLLINS SUBMITTING A BALLOT QUESTION TO THE REGISTERED ELECTORS OF THE CITY AT A SPECIAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 8, 2016, AND CONDUCTED AS A COORDINATED ELECTION WITH LARIMER COUNTY, ASKING THE VOTERS TO CONFIRM THAT THE CITY MAY RETAIN AND SPEND ALL REVENUES IT HAS RECEIVED AND WILL CONTINUE TO RECEIVE RELATING TO THE “KEEP FORT COLLINS GREAT” .85% SALES AND USE TAX VOTERS APPROVED IN 2010 WHEREAS, on November 2, 2010, the City held a special election conducted as a coordinated election with Larimer County; and WHEREAS, at that election, the City’s electorate considered, and 60% of those voting approved, a ballot question asking whether the City shall increase its taxes in 2011 by an estimated $18.7 million and by such amounts as generated thereafter by increasing the City’s sales and use tax rate from 3.00 % to 3.85% commencing on January 1, 2011, and ending midnight on December 31, 2020, to be spent only for these purposes: (a) 33% for street maintenance and repair, (b) 17% for other street and transportation needs, (c) 17% for police services, (d) 11% for fire protection and other emergency services, (e) 11% for parks maintenance and recreation services, and (f) 11% for other community priorities as determined by the City Council, which tax rate increase is commonly known as the “Keep Fort Collins Great” tax (the “KFCG Tax”); and WHEREAS, as a proposed increase in the rate of the City’s sales and use tax, the KFCG Tax was required to be approved by the voters under Colorado’s Taxpayer’s Bill of Rights in Article X, Section 20 of the Colorado Constitution (“TABOR”); and WHEREAS, the KFCG Tax ballot question voters approved also asked whether “all revenue generated” from the KFCG Tax could be spent for the purposes specified in the ballot question and whether “the full revenues derived from the tax, and investment earnings thereon, may be retained and expended by the City for such purposes, notwithstanding any State revenue or expenditure limitations including but not limited to [TABOR]” (“KFCG Revenue Change”); and WHEREAS, in the years 2011 to the present, the City has collected over $144 million of KFCG Tax revenues and spent these revenues for the following purposes as specifically authorized by the voters in the KFCG Tax ballot question: -2- (a) Streets. More than 300 lane miles have been resurfaced, and surface patching, centerline marking, sidewalk and concrete work throughout the City has been completed. (b) Other Transportation. Nine bridges have been designed and/or constructed (including Shields at Rolland Moore, East and West Prospect, and multiple bridges over Arthur Ditch). Safe Routes to School, Neighborhood Plans and Neighborhood Parking initiatives have been designed and implemented. Transfort, the Max and Dial-a-Ride have expanded service, including Saturday and evening trips. Signals and sidewalks have been upgraded throughout the City improving traffic flow and ADA accessibility. (c) Police. Thirty positions have been added, including 19 sworn police officers. With additional resources, there has been an increase in Community Policing efforts, resulting in reduced call volumes for both neighborhoods and in Old Town. (d) Fire. The Poudre Fire Authority (“PFA”) has hired 13 firefighters and staffed the South Battalion. Response times have been reduced by more than 2 minutes in PFA’s southern jurisdiction. Funding has also been used to ensure first responders have up-to-date equipment including breathing apparatuses. (e) Parks and Recreation. Approximately 3,000 scholarships per year have been provided to low-income citizens, Fossil Creek Trail was expanded and connected to Spring Creek trail, more than 4,000 hours per year of Adaptive Recreation programming was provided, and the existing service hours and levels at all City Recreation centers has been maintained. Various park improvements were completed, including Rolland Moore restrooms, Veteran’s Plaza, field lighting and playground equipment upgrades. (f) Other Community Priorities. Funding has been provided for the Poudre River capital restoration projects, to more than 10 community agencies supporting before and after school care, school lunch programs and meals for low income citizens, the annual 4 th of July celebration at City Park, and staffing and supplies to maintain the downtown flowers; and WHEREAS, a Fort Collins citizen has raised the prospect of a lawsuit against the City under TABOR to require the City to refund a substantial portion of the KFCG Tax revenues the City has already collected and spent for the voter-authorized purposes described above and to require the City to substantially reduce the KFCG Tax .85% rate voters approved in 2010; and WHEREAS, litigating this issue, rather than promptly presenting a ballot question to the voters for their resolution of the issue, will result in several years of uncertainty concerning how the City should plan and budget for current and future City services and capital projects and whether the City should continue to collect the KFCG Tax; and WHEREAS, this uncertainty will likely result in an immediate and substantial reduction of City services to the community, particularly those funded with KFCG Tax revenues, which would include: (i) police, fire and other emergency services, (ii) construction, maintenance and operation of streets and transportation services, and (iii) the operation and maintenance of parks and recreation facilities; and -3- WHEREAS, as with any litigation, the City will also incur its own court costs and attorney fees in defending the lawsuit, and if the City does not prevail, the City might have to pay the plaintiff’s court costs and attorney fees; and WHEREAS, if the courts require the City to refund taxpayers any amount of the KFCG Tax revenues, the City may also be required to add 10% annual simple interest to that refund amount; and WHEREAS, the threatened lawsuit relates to two TABOR provisions, one of which, Section 20(3)(b)(iii), required that voters be mailed a notice before the 2010 election to provide them with two different estimates of City revenues in 2011, the first full fiscal year of the proposed KFCG Tax (the “TABOR Notice”); and WHEREAS, the first revenue estimate in the TABOR Notice was an estimate of the maximum dollar amount the City expected to receive in 2011 from the KFCG Tax, which the City estimated would be $18.7 million, and the second revenue estimate was an estimate of the City’s “fiscal year spending” in 2011 without the KFCG Tax increase, which the City estimated would be $146.5 million in 2011; and WHEREAS, in 2011 the City’s actual KFCG Tax revenues were $19.8 million and its “fiscal year spending” without the KFCG Tax revenues was approximately $160 million; and WHEREAS, the other related TABOR provision, Section 20(3)(c), provides that if either of these two revenue estimates in a TABOR election notice is exceeded in the first full fiscal year of a tax increase, as occurred with the KFCG Tax, certain excess revenues must be refunded to the taxpayers and the tax increase is thereafter to be reduced, unless there is “later voter approval;” and WHEREAS, the City believes this “later voter approval” may be satisfied by including in the ballot question for a proposed tax increase language like that in the KFCG Revenue Change quoted above or by a ballot question approved by voters to allow a government more generally to collect, retain and spend all of the TABOR revenues it receives notwithstanding any limitations on those revenues in TABOR, like those in TABOR Section 20(3)(c); and WHEREAS, in 1997, the City’s voters approved a ballot question that has generally authorized the City “to collect, retain and expend the full proceeds of the City’s property taxes and all other funds and revenue sources . . . in 1996 and all revenues received in every year thereafter . . . notwithstanding any state revenue or expenditure limitations, including without limitation those contained in [TABOR]” (“General Revenue Change”), which further reflects the intent of the City’s voters to exempt all of the City’s TABOR revenues from all of TABOR’s revenue limitations, including those limitations in TABOR Section 20(3)(c); and WHEREAS, notwithstanding the voters’ approval of the KFCG Revenue Change and the General Revenue Change, questions have been raised recently as to whether these voter- approved waivers of TABOR revenue limitations are sufficient to satisfy the later-voter-approval requirement in TABOR Section 20(3)(c); and -4- WHEREAS, these questions have arisen largely related to the State of Colorado’s November 2015 ballot question for Proposition BB, which asked the State’s voters under TABOR Section 20(3)(c) to allow the State to retain and spend the revenues it received in fiscal year 2014-15 from the marijuana taxes the State’s voters approved in Proposition AA at the State’s November 2013 election; and WHEREAS, although the ballot question for Proposition AA contained language approving the waiver of any revenue limitations provided by law for these marijuana tax revenues, much like the City’s KFCG Revenue Change language, and in 2005 the State’s voters approved Referendum C that generally waived TABOR’s revenue limitations for most of the State’s future TABOR revenues, like the City’s General Revenue Change has done for the City’s TABOR revenues, the State nevertheless presented Proposition BB to the voters; and WHEREAS, the State appears to have done this on the basis of a legal opinion from the Colorado Office of Legislative Legal Services (“LLS”), which provides legal advice to the Colorado General Assembly, that questioned whether these waivers of TABOR revenue limitations by the State satisfied Section 20(3)(c)’s later-voter-approval requirement, although in doing so, the LLS opinion concedes that there is currently no decision by the Colorado appellate courts that squarely addresses the question of what is required for “later voter approval” under Section 20(3)(c); and WHEREAS, while there are not any judicial decisions squarely addressing this question, the Colorado Supreme Court has in past decisions approved of voters, in various circumstances, waiving the revenue limitations imposed by TABOR for all revenues of a specific tax and even for all of a government’s TABOR revenues; and WHEREAS, considering the clear and all-inclusive language of the KFCG Revenue Change in the KFCG Tax ballot question voters approved in 2010 and the equally clear and all- inclusive language voters approved in the General Revenue Change, it is reasonable to conclude that the City’s voters have already and sufficiently determined that they want the City to collect, retain and spend all of the KFCG Tax and any other revenue TABOR Section 20(3)(c) might otherwise require to be refunded, without the electorate having to vote a third time to decide this issue; and WHEREAS, in addition, the Supreme Court has repeatedly rejected a rigid interpretation of TABOR that would have the effect of working a reduction in government services or unreasonably curtail the everyday functions of government; and WHEREAS, since lengthy litigation would nevertheless stall current City programs that clearly benefit citizens and taxpayers, the Council has determined that is in the City’s best interest to promptly confirm the voters’ intent with respect to this matter, rather than allow the uncertainty of litigation to interfere with the City’s provision of the services the voters requested through their 2010 approval of the KFCG Tax; and -5- WHEREAS, in order to eliminate this uncertainty and to also avoid the financial risks to the City that would come with litigating this issue, the City Council finds and determines that it is in the best interest of the City and its taxpayers and is necessary for the public’s health, safety and welfare that a ballot question be submitted to the City’s electorate as hereafter provided; and WHEREAS, on August 16, 2016, the City Council adopted on final reading Ordinance No. 097, 2016, calling a special City election to be held on November 8, 2016, to be conducted as a coordinated election with Larimer County; and WHEREAS, Article X, Section 3 of the Charter of the City of Fort Collins authorizes the City Council to submit any question to a vote of the people at a special election. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings in the recitals set forth above. Section 2. That there is hereby submitted to the registered electors of the City at the City’s special municipal election to be held in conjunction with the November 8, 2016, Larimer County General Election as a coordinated election, the following ballot question: City-Initiated Question Concerning Whether the City May Keep and Spend All Revenues Related to the “Keep Fort Collins Great” Sales and Use Tax City Voters Approved in 2010 MAY THE CITY KEEP ALL OF THE REVENUES THAT IT HAS COLLECTED FROM THE CITY’S “KEEP FORT COLLINS GREAT” .85% SALES AND USE TAX APPROVED BY THE VOTERS IN 2010, WHETHER OR NOT SUCH REVENUES HAVE ALREADY BEEN SPENT, AND CONTINUE TO COLLECT THE TAX AT THE .85% RATE AND SPEND ALL OF THE REVENUES IN THE FOLLOWING WAYS DIRECTED BY THE VOTERS IN 2010: 33% FOR STREET MAINTENANCE AND REPAIR; 17% FOR OTHER STREET AND TRANSPORTATION NEEDS; 17% FOR POLICE SERVICES; 11% FOR FIRE PROTECTION AND OTHER EMERGENCY SERVICES; 11% FOR PARKS MAINTENANCE AND RECREATION SERVICES; AND 11% FOR COMMUNITY PRIORITIES OTHER THAN THOSE LISTED ABOVE, AS DETERMINED BY THE CITY COUNCIL; WITHOUT REFUNDING ANY AMOUNT FOR EXCEEDING THE REVENUE ESTIMATES IN THE ELECTION NOTICE MAILED TO VOTERS IN 2010? -6- _____ Yes/For _____ No/Against Passed and adopted at an adjourned regular meeting of the Council of the City of Fort Collins this 30th day of August, A.D. 2016. __________________________________ Mayor ATTEST: _____________________________ City Clerk -1- RESOLUTION 2016-078 OF THE COUNCIL OF THE CITY OF FORT COLLINS URGING THE CITY’S ELECTORS TO VOTE “YES/FOR” BALLOT ISSUE 2A ON THE BALLOT OF THE NOVEMBER 8, 2016 ELECTION, WHICH ASKS CITY VOTERS TO CONFIRM THAT THE CITY MAY KEEP AND SPEND ALL REVENUES IT HAS RECEIVED AND WILL CONTINUE TO RECEIVE FROM THE “KEEP FORT COLLINS GREAT” .85% SALES AND USE TAX CITY VOTERS APPROVED IN 2010 WHEREAS, at the City’s November 2, 2010 election, the City’s electorate considered, and 60% of those voting approved, a ballot question asking whether the City shall increase its taxes in 2011 by an estimated $18.7 million and by such amounts as generated thereafter by increasing the City’s sales and use tax rate from 3.00 % to 3.85% commencing on January 1, 2011, and ending midnight on December 31, 2020, to be spent only for these purposes: (a) 33% for street maintenance and repair, (b) 17% for other street and transportation needs, (c) 17% for police services, (d) 11% for fire protection and other emergency services, (e) 11% for parks maintenance and recreation services, and (f) 11% for other community priorities as determined by City Council, which tax rate increase is commonly known as the “Keep Fort Collins Great” tax (the “KFCG Tax”); and WHEREAS, as a proposed increase in the rate of the City’s sales and use tax, the KFCG Tax was required to be approved by the voters under Colorado’s Taxpayer’s Bill of Rights in Article X, Section 20 of the Colorado Constitution (“TABOR”); and WHEREAS, the City has collected $117 million of KFCG Tax revenues during 2011 through 2015 and it is estimated the City will collect another $28 million in 2016, and of this $145 million total amount, the City has already spent or appropriated for spending $134 million for the purposes specifically directed by the voters in the 2010 KFCG Tax ballot question, examples of which include: (a) Streets. More than 300 lane miles have been resurfaced, and surface patching, centerline marking, sidewalk and concrete work throughout the City has been completed. (b) Other Transportation. Nine bridges have been designed and/or constructed (including Shields at Rolland Moore, East and West Prospect, and multiple bridges over Arthur Ditch). Safe Routes to School, Neighborhood Plans and Neighborhood Parking initiatives have been designed and implemented. Transfort, the Max and Dial-a-Ride have expanded service, including Saturday and evening trips. Signals and sidewalks have been upgraded throughout the City, improving traffic flow and ADA accessibility. (c) Police. Thirty positions have been added, including 19 sworn police officers. With additional resources, there has been an increase in Community Policing efforts, resulting in reduced call volumes for both neighborhoods and in Old Town. -2- (d) Fire. The Poudre Fire Authority (“PFA”) has hired 13 firefighters and staffed the South Battalion. Response times have been reduced by more than 2 minutes in PFA’s southern jurisdiction. Funding has also been used to ensure first responders have up-to- date equipment including breathing apparatuses. (e) Parks and Recreation. Approximately 3,000 scholarships per year have been provided to low-income citizens, Fossil Creek Trail was expanded and connected to Spring Creek trail, more than 4,000 hours per year of Adaptive Recreation programming was provided, and the existing service hours and levels at all City recreation centers has been maintained. Various park improvements were completed, including Rolland Moore Park restrooms, Veteran’s Plaza, field lighting and playground equipment upgrades. (f) Other Community Priorities. Funding has been provided for the Poudre River capital restoration projects, to more than 10 community agencies supporting before and after school care, school lunch programs and meals for low income citizens, the annual 4 th of July celebration at City Park, and staffing and supplies to maintain the downtown flowers; and WHEREAS, the KFCG Tax ballot question voters approved in 2010 specifically asked whether “all revenue generated” from the KFCG Tax could be spent for the purposes specified in the ballot question and whether “the full revenues derived from the tax, and investment earnings thereon, may be retained and expended by the City for such purposes, notwithstanding any State revenue or expenditure limitations including but not limited to [TABOR]” (“KFCG Revenue Change”); and WHEREAS, in 1997 the City’s voters also approved a ballot question that has generally authorized the City “to collect, retain and expend the full proceeds of the City’s property taxes and all other funds and revenue sources . . . in 1996 and all revenues received in every year thereafter . . . notwithstanding any state revenue or expenditure limitations, including without limitation those contained in [TABOR]” (“General Revenue Change”); and WHEREAS, a Fort Collins citizen recently raised the prospect of a lawsuit against the City under TABOR to require the City to refund a substantial portion of the KFCG Tax revenues the City has already collected and spent for the voter-authorized purposes described above, and to require the City to substantially reduce the KFCG Tax .85% rate the voters approved in 2010; and WHEREAS, promptly presenting a ballot question to the voters for their confirmation as to their intent regarding the KFCG Tax revenues will avoid uncertainty concerning how the City should plan and budget for current and future City services and capital projects and whether the City should continue to collect the KFCG Tax; and WHEREAS, the Council has therefore previously determined that is in the City’s best interest to promptly confirm the voters’ intent regarding this matter, by submitting to the -3- electorate at the November 8 special election a ballot question with the following title, that is designated on the ballot as Ballot Issue 2A: “City-Initiated Question Concerning Whether the City May Keep and Spend All Revenues Related to the “Keep Fort Collins Great” Sales and Use Tax City Voters Approved in 2010. ; and WHEREAS, the Council believes it is important and in the best interest of this community that Ballot Issue 2A be approved by the voters. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that, for the foregoing reasons, the City Council supports the passage of Ballot Issue 2A and strongly urges registered electors of the City to vote “Yes/For” on Ballot Issue 2A in the November 2016 election to confirm that the City is allowed to keep and spend all the revenues it has received and will continue to receive from the KFCG Tax and to continue to impose the KFCG Tax at the rate of .85%, as the City’s voters approved in 2010. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 4th day of October, A.D. 2016. _________________________________ Mayor ATTEST: _____________________________ City Clerk